The United States and Iran have signaled that a diplomatic agreement to end their current conflict is nearing finalization, with both nations reportedly agreeing on a text for a memorandum of understanding. According to a senior US administration official, Washington expects to sign an initial deal in the coming days, a move that follows intensive mediation efforts led by Pakistan.
What are the terms of the proposed US-Iran agreement?
The draft agreement focuses primarily on de-escalating military tensions rather than resolving long-standing nuclear disputes. According to sources familiar with the negotiations, the memorandum requires the immediate reopening of the Strait of Hormuz and the lifting of the US blockade on Iranian ports.
While the US official stated the deal includes a long-term inspection regime to dismantle Iran’s nuclear program, Iranian Foreign Minister Abbas Araghchi offered a different perspective. Araghchi told state television that Tehran intends to retain its highly enriched uranium by down-blending the material rather than destroying it. Furthermore, while the US administration official characterized the deal as "performance-based"—noting that no frozen assets would be released until Iran meets specific benchmarks—other sources indicate the proposal includes discussions on potential war reparations for Tehran and the removal of US demands regarding Iran’s missile program.
Why is the Strait of Hormuz critical to the conflict?
The Strait of Hormuz is a vital maritime chokepoint that, prior to the conflict, facilitated the transport of one-fifth of the world’s oil and gas supply. Iran closed the waterway following joint US-Israel attacks in February.
The strategic importance of the strait remains a point of contention between the two powers. Araghchi stated that Iran, alongside Oman, intends to maintain control over traffic through the waterway, declaring, “Our sword will always hang over the Strait of Hormuz.” Recent reports from Iranian news agencies suggest that Iranian forces continue to fire warning shots at vessels attempting to transit the strait without permission from the Revolutionary Guard’s navy. Meanwhile, sources familiar with the matter confirmed to Reuters that US forces recently shot down several Iranian one-way attack drones that posed a threat to commercial shipping in the area.
How does the Israel factor influence the deal?
Israel, which launched the war alongside the US, is not a party to the memorandum of understanding. Prime Minister Benjamin Netanyahu has publicly confirmed that Israel will not be a participant in the agreement.
This diplomatic gap highlights a growing friction between Washington and Jerusalem. According to reports, President Donald Trump has faced pressure to curb Israeli military action in Lebanon to facilitate the deal with Tehran. While Araghchi claims the agreement will result in the end of the war in Lebanon and an Israeli withdrawal, a senior Israeli official stated that Israel intends to retain its freedom to act against perceived threats within areas under its control.
Did you know?
Global oil markets reacted swiftly to the news of the potential deal. Brent crude prices fell by more than 3 per cent on June 13, 2026, reaching their lowest levels in nearly two months as investors anticipated a potential increase in supply.
Frequently Asked Questions
Who is mediating the negotiations?
Pakistan has taken the lead in mediation efforts between the US and Iran, with Prime Minister Shehbaz Sharif stating that the countries have reached a "final, agreed upon text."
Where will the deal be signed?
While Geneva has been cited as a likely venue for a signing ceremony involving Vice President JD Vance and Iranian parliament speaker Mohammad Baqer Qalibaf, the US administration official noted that European locations are also under consideration.
Does the deal resolve Iran’s nuclear program?
The US official claims the deal leads to the dismantling of the nuclear program, but Iranian officials have publicly stated they have not accepted those terms, preferring to down-blend their uranium stockpile instead.
What is the status of the war in Lebanon?
The agreement reportedly includes provisions for ending the war in Lebanon, though Israeli officials have rejected the notion of a withdrawal from the region, citing a need to maintain security operations.
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